aleos and external bodies monitoring sub 11 october2017 · aleos and external bodies monitoring sub...

ALEOs AND EXTERNAL BODIES MONITORING SUB − 11 October 2017

Motherwell, 11 October 2017 at 10 am.

A Meeting of the ALEOs AND EXTERNAL BODIES MONITORING SUB−COMMITTEE

PRESENT AGENDA ITEM No.

Councillor Roarty, Convener; Councillor Burrows, Vice−Convener; Councillors D. Ashraf, Cameron, Cullen,Encinias, MacGregor, McKendrick, McNally, H. McVey, Reddin and Weir.

CHAIR

Councillor Roarty (Convener) presided.

IN ATTENDANCE

Head of Education (Central); Head of Enterprise and Place; Strategic Adviser (External Organisations);Corporate Development Manager; Finance Manager; Employability Services Team Leader; Surveyor;Development and Funding Officer, and Democratic Services Manager.

APOLOGIES

Councillors Cochrane and Kerr.

DECLARATIONS OF INTEREST IN TERMS OF THE ETHICAL STANDARDS IN PUBLIC LIFE ETC.(SCOTLAND) ACT 2000

1. Councillor H. McVey declared an interest in paragraph 4 by virtue of being a member of CultureNLand left the meeting during consideration of that item of business.

Councillor McNally declared an interest in paragraph 5 by virtue of being a member of NL LeisureLimited and left the meeting during consideration of that item of business.

Councillor Cameron declared an interest in paragraphs 7 and 8 by virtue of being a member of SPTand left the meeting during consideration of these items of business.

PRESENTATION − FUSION ASSETS LIMITED

2. Murray Collins, Managing Director of Fusion Assets Limited provided a presentation to theSub−Committee outlining the roles and responsibilities of Fusion Assets and informedof:−•

Fusion Assets' business model;

• the supply and demand for property development;

• the industrial portfolio and funding solutions;

• long term regeneration outputs, and

• developments currently underway.

Decided: that the presentation be noted.

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PERFORMANCE MONITORING REPORTS

(1) FUSION ASSETS LIMITED

There was submitted a report dated 11 October 2017 by the Strategic Adviser, External Organisationsproviding an overview of the performance of Fusion Assets Limited (Fusion Assets) in meeting itsperformance objectives and targets for the period 1 April to 30 September 2017 (1) detailing theoperational performance against 2017/18 targets for Quarters 1 and 2; (2) outlining Fusion Assets'financial performance against its approved 2017/18 Revenue budget as at 31 May 2017; (3) informingof Fusion Assets' public accountability obligations; (4) advising of the overall financial standing ofFusion Assets; (5) highlighting that work is currently being undertaken to collate all of the company'sidentified risks under the five key risk headings to assist with monitoring and reporting; (6)summarising a number of projects within Fusion Assets which have reached the point in thecompany's operating model where they may be marketed or leased to generate either a capitalreceipt or rental income, and (7) enclosing, in the Appendices to the report, a number of documentssupporting the narrative contained within the report.

Decided:

(1) that Fusion Assets' operational performance against 2017/18 targets for Quarters 1 and 2 benoted;

(2) that Fusion Assets' financial performance against its approved 2017/18 Revenue budget as at31 May 2017 be noted, and

(3) that the report be otherwise noted.

Prior to consideration of the following item of business, Councillor H. McVey, by virtue of being amember of CultureNL Limited, declared an interest and took no part in the determination of the item.

(2) RE−APPOINTMENT OF INDEPENDENT DIRECTOR − CULTURENL LIMITED

4. There was submitted a report dated 11 October 2017 by the Strategic Adviser, External Organisations(1) providing an overview of the operational performance of CultureNL Limited (CultureNL) in Quarter1 of 2017/18; (2) outlining CultureNL's financial performance as at 2016/17 financial year end and upto 21 July 2017; (3) detailing the background to CultureNL's Board of Directors; (4) proposing tore−appoint David Craig as a Board Member, following CultureNL's AGM held on 18 September 2017;(5) advising of the potential impact of the Barclay Review to non domestic rates in Scotland, and (6)enclosing, in the Appendices to the report, a number of documents supporting the informationcontained within the narrative to the report.

Decided:

(1) that CultureNL's operational performance for Quarter 1 in 2017/18 be noted;

(2) that CultureNL's financial performance as at 2016/17 financial year end and against itsapproved 2017/18 Revenue and Capital budgets as at financial period 4, ending on 21 July2017, be noted, and

(3) that the proposed re−appointment of David Craig as an independent Director of CultureNL benoted and remitted to the Infrastructure Committee for approval.

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Prior to consideration of the following item of business, Councillor McNally, by virtue of being amember of NL Leisure, declared an interest and took no part in the determination of the item.

(3) NL LEISURE LIMITED

There was submitted a report dated 11 October 2017 by the Strategic Adviser, External Organisations(1) providing an overview of operational performance by North Lanarkshire Leisure Limited (NLLeisure) in Quarter 1 of 2017/18; (2) outlining NL Leisure's financial standing for 2016/17; (3) detailingNL Leisure's financial performance against its approved 2017/18 Revenue and Capital budgets as atfinancial period 5, ending on 13 August 2017; (4) advising of the potential impact on the Council of theBarclay Review into non domestic rates in Scotland, and (5) enclosing, in the Appendices to thereport, a number of documents supporting the information contained within the narrative to the report.

During consideration of this matter, the Sub−Committee requested that future reports includeinformation on management actions to address financial stability.

Decided:

(1) that NL Leisure's operational performance for Quarter 1 of 2017/18 be noted;

(2) that NL Leisure's financial standing for 2016/17 be noted, and

(3) that NL Leisure's financial performance against its approved 2017/18 Revenue and Capitalbudgets as at financial period 5, ending on 13 August 2017, be noted.

(4) NORTH LANARKSHIRE PROPERTIES LLP

6. There was submitted a report dated 11 October 2017 by the Strategic Adviser, External Organisations(1) providing an overview of operational performance by North Lanarkshire Properties LLP (NLP LLP)against its 2017/18 targets for the period 1 April to 21 July 2017; (2) outlining NLP LLP's financialperformance as at financial year end 2016/17 and period 4, covering the period 1 April to 21 July2017, and (3) enclosing, in the Appendices to the report, a number of documents supporting theinformation contained within the report.

Decided:

(1) that NLP LLP's operational performance against its 2017/18 targets for the period 1 April to21 July 2017 be noted;

(2) that NLP LLP's financial performance as at financial year end 2016/17 and period 4, coveringthe period 1 April to 21 July 2017, be noted, and


Prior to consideration of the following two items of business, Councillor Cameron, by virtue of being amember of SPT, declared an interest and took no part in the determination of the items.

(5) STATUTORY BODIES: ANNUAL OVERVIEW REPORT 2016/17

7. There was submitted a report dated 11 October 2017 by the Strategic Adviser, External Organisations(1) reminding the Sub−Committee that the Council appoints Elected Members to various statutorybodies, namely Lanarkshire Valuation Joint Board, Strathclyde Partnership for Transport, StrathclydeConcessionary Fares, and Health and Social Care North Lanarkshire Joint Integration Board; (2)informing that each organisation is required to prepare and publish an Annual Statement of Accountsand Public Performance Reports; (3) stating that there is significant public scrutiny in respect of each

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of the organisations; (4) summarising each organisation's performance and governance arrangementsto demonstrate compliance, and (5) enclosing, in the Appendices to the report, an overview of eachorganisation's performance for 2016/17.

Decided:

(1) that the governance and scrutiny arrangements currently in place within each of the statutorybodies be noted, and

(2) that each organisations 2016/17 performance be noted.

(6) THE CAMPSIES CENTRE CUMBERNAULD LIMITED: ANNUAL OVERSIGHT REPORT 2016/17

8. There was submitted a report dated 11 October 2017 by the Strategic Adviser, External Organisations(1) providing an overview of the operational performance by Campsies Centre Cumbernauld Limited(CCCL) against the Council's strategic priorities; (2) outlining CCCLs financial performance for theyear ending 31 March 2017 and the period 1 April to 31 May 2017, and (3) enclosing, in theAppendices to the report, documents supporting the information contained within the report.

Decided:

(1) that CCCL's operational performance against the Council's strategic priorities be noted;

(2) that CCCL'S financial performance for the year ending 31 March 2017 and the period 1 Aprilto 31 May 2017 be noted, and


ARMS LENGTH ORGANISATIONS: COMPLIANCE WITH 2016117 FINANCIAL ASSURANCE

There was submitted a report dated 18 September 2017 by the Head of Business for FinancialSolutions (1) reminding members that the Council has a statutory duty to ensure the properaccountability and transparency of the money spent through the Arms Length External Organisations(ALEOs); (2) detailing the background relative thereto; (3) providing a summary of the organisations'compliance with the Council's approved 2016/17 financial governance arrangements, and (4)enclosing, in the Appendix to the report, the list of current organisations and the scrutinyrequirements.

Decided: that the compliance with the approved 2016/17 ALEO assurance arrangements benoted.

PROGRESS REPORT − PHASE I AND PHASE 2 − ALEO REVIEWS

10. With reference to (1) paragraphs 12 and 13 of the Minute of the meeting of the Policy and ResourcesCommittee held on 21 June 2017, when it had been agreed to note the reports previously consideredby the former ALEOs and External Bodies Monitoring Committee of 16 February 2017 regarding thePhase 1 ALEO review programme of CultureNL and NL Leisure, and (2) paragraph 13 of the Minuteof the meeting of the Policy and Resources Committee of 21 September 2017 when, inter alia, it hadbeen agreed that approval be given to a re−assessment of the benefits, costs and risks of in−houseservice delivery alongside the detailed stakeholder engagement, financial appraisal and due diligencewhich was currently underway in respect of a single delivery vehicle option, there was submitted areport regarding progress to date against the previously approved ALEO review schedule andhighlighting the impacts which the Barclay Review of non−domestic rates had on the option appraisal

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previously approved (a) detailing within the report an update with regard to the ALEO review Phase 1and Phase 2, with Appendix 1 to the report highlighting an updated project plan which now included are−assessment of the benefits, cost and risks associated with in−house service delivery, and Appendix2 to the report providing a graphical overview of the planned timescales for the Phase 2 review; (b)informing that the Council had recently sold its 10% share holding in Walker Profiles Limited, thereforethis organisation was no longer within the remit of the ALEOs and External Bodies MonitoringSub−Committee; (c) advising of the status of the Amey Public Services LLP (APS LLP) ImprovementPlan, and (d) intimating that a further report outlining the progress of the detailed option appraisalswould be submitted to a future meeting of this Sub−Committee.

Decided:

(1) that the progress made to date, regarding the detailed due diligence review in respect of thesingle delivery vehicle option approved by the Policy and Resources Committee in June 2017be noted;

(2) that the detailed due diligence review, which now also included a re−assessment of thebenefits, cost and risks associated with in−house service delivery, be noted;

(3) that the current status of the due diligence underway in respect of the APS LLP ImprovementPlan be noted;

(4) that the planned timeframes for the Phase 2 reviews in respect of Town Centre ActivitiesLimited, Fusion Assets Limited, North Lanarkshire Properties LLP and Campsies CentreCumbernauld Limited be noted, and

(5) that a further report outlining progress of the detailed options appraisal will be presented forconsideration at a future meeting of this Sub−Committee.

ROUTES TO WORK LIMITED − BREXIT IMPLICATIONS UPDATE

11. With reference to paragraph 4 of the Minute of the meeting of this Sub−Committee held on19 July 2017 there was submitted a report dated 11 October 2017 by the Head of Education (South)(1) providing an update on the potential impact of the EU Referendum on EU Funding allocated toRoutes to Work; (2) informing of the current EU funding commitments made by the ScottishGovernment and the potential future commitments based on current UK Governmentcommunications; (3) advising of the possible impact of Brexit on the economy which could impact onthe work of employability partners generally including Routes to Work Limited; (4) summarising thatthe risks associated with the project are included within the Education, Youth and Communities RiskRegister and the Routes to Work Risk Register, and (5) recommending that further information on theimpact of Brexit be included in future monitoring reports to this Sub−Committee regarding Routes toWork Limited.

Decided:

(1) that further information on the impact of Brexit be included in future monitoring reports to thisSub−Committee regarding Routes to Work Limited, and

(2) that the contents of the report be otherwise noted.

TOWN CENTRE ACTIVITIES LIMITED: − SERVICE LEVEL AGREEMENT 2017 TO 2019

12. With reference to paragraph 12 of the Minute of the meeting of this Sub−Committee held on19 July 2017, there was submitted a report dated 11 October 2017 by the Strategic Advisor ExternalOrganisations (1) providing an update on the final draft Service Level Agreement (SLA) between

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North Lanarkshire Council and Town Centre Activities (TCA) Limited; (2) detailing the backgroundrelative thereto; (3) outlining the services to be provided by TCA Limited and the associated feespayable by the Council; (4) intimating that the SLA covers the period 2017/18 and 2018/19 withprovision for the Council to extend the agreement for a further one year period from 1 April 2019 until31 March 2020; (5) advising that the agreement references TCA Limited's current engagement andPhase 2 of this Sub−Committee's approved ALEO review programme; (6) informing that the terms ofthe draft SLA have been approved by TCA Limited's Solicitors, and (7) confirming that the agreementwill be concluded by the Assistant Chief Executive (Enterprise and Housing) in conjunction with theHead of Business for Legal and Democratic Solutions.

Decided:

(1) that the draft SLA between the Council and TCA Limited in respect of services to be deliveredon behalf of the Council in the period 1 April 2017 to 31 March 2019 be noted;

(2) that it be noted that the Council may approve an extension to the SLA for up to one year to31 March 2020;

(3) that the services that TCA Limited is required to provide on behalf of the Council and theassociated service fees payable by Council services from approved 2017/18 budgets benoted;

(4) that financial payments in respect of financial year 2018/19 be developed, within the contextof the Council's wider 2018/19 budget setting process during the remainder of this financialyear be noted, and

(5) that the Assistant Chief Executive (Enterprise and Housing), in conjunction with the Head ofBusiness for Legal and Democratic Solutions, conclude the SLA with TCA Limited.

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